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US$18 billion sale of Toshiba's Memory Corporation to consortium that includes Seagate and Apple is approved

Toshiba now has the regulatory approval needed to complete the sale of their semiconductor business to a consortium of companies. (Source: Toshiba)
Toshiba now has the regulatory approval needed to complete the sale of their semiconductor business to a consortium of companies. (Source: Toshiba)
Consortium of buyers includes Seagate, Apple, Dell, Kingston, and SK Hynix. This is one of Seagate's biggest movements into the NAND flash business, an area where their major competitor, Western Digital, has focused on in recent years.

Toshiba, the Japanese electronics giant, has fallen on hard times in the last few years with the combination of their US-based Westinghouse Electric Company (nuclear reactors) and an accounting scandal that resulted from falsified records, leading to substantial financial loses. Because of this, Toshiba has been in the process of selling off parts of their corporation for cash injections. These include a vast majority share of their TV business, medical equipment, and household goods.

The biggest sale was that of Toshiba Memory Corp, their market leading semiconductor business that is the largest producer of NAND flash in the world. A consortium of companies led by Bain Capital — specifically Seagate, Dell, Apple, Kingston, and SK Hynix — had previously agreed to buy the company for JP¥2 Trillion (US$18 Billion). They had run into two main issues, the first of which was Western Digital blocking the move due to a collaborative agreement between their subsidiary, SanDisk, and Toshiba. This was sorted out, but regulatory approval for anti-monopoly practices still needed to be granted before the sale could go ahead.

Chinese regulatory authorities have now granted the permissions needed for the sale to go ahead. Completion of this sale will mark Toshiba’s return to profitability for the first time since their financial woes came to light a few years ago. Since Toshiba had previously agreed to this deal, they are obliged to see it through. If the Chinese authorities had denied the sale, then Toshiba may have decided not to sell their semiconductor business since recent cash injections from an over US$5 billion share issue earlier this year had significantly improved their bank balance. They may have preferred to sell additional shares in Toshiba Memory Corp instead of selling it outright.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 05 > US$18 billion sale of Toshiba's Memory Corporation to consortium that includes Seagate and Apple is approved
Craig Ward, 2018-05-19 (Update: 2018-05-19)
Craig Ward
Craig Ward - News Editor
I grew up in a family surrounded by technology, starting with my father loading up games for me on a Commodore 64, and later on a 486. In the late 90's and early 00's I started learning how to tinker with Windows, while also playing around with Linux distributions, both of which gave me an interest for learning how to make software do what you want it to do, and modifying settings that aren't normally user accessible. After this I started building my own computers, and tearing laptops apart, which gave me an insight into hardware and how it works in a complete system. Now keeping up with the latest in hardware and software news is a passion of mine.